[singiinng] hoveround untakes m. call or log loon to hoveround. find outt where a hoa veround can take you're watching today's edition of "worldwide exchange." we'll talk in brussels. >> we went through a difficult period and we have determination and commitment that we shall get out of it. >> the nikkei went to a 5 1/2

year high up to 47. big boxes are reassuring their customers. plus, china's industrial output is clouding the recovery outlet. the world's second biggest economy. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. all right. welclcome to the start of anoth week here on "worldwide exchange." plenty to get to. we're looking at politics in pakistan. sharrif has started talks to form a new government after a wider than expected victory for his party. the contest is being clouded.

london takes it hard. they say glenko has hundreds of small takeovers. and the bull market has recent debt sales. they've warned the good times might be short lived. we'll bring you the auctions around 11:15. it was the tale of two stories. we'll break down the winners and losers around 11:30 ct. if you've got any thoughts, comments, e-mail us at worldwide@cnbc.com. any deal would require change. the financial times is short

lived. it's a two-step approach that would leave bank rescues in the hands of national authorities rather than the single approach. jules is on her european travels again this time joining us from brussels. good morning, julia. >> good morning. i think it's probably best to say, ross, that they're concerned yet again but here we are. yes, i spoke to the head of the euro a week ago. he was positive on coming to an agreement about the banking union. he said to me, yet again we have the finance minister of germany that ultimately in order to see a treaty, we need treaty changes. it's going to be months if not years. >> i'm confident we'll reach results before the summer also in the banking union, also the

issue of bailing in banks that are in trouble. we need to make clear both to depositors, financial markets how in the future we will deal with that in europe. i think we're dealing with that and making progress. >> soon? >> not this month but the summer. we have to get it right this time. we have to do it thoroughly and that we have a very solid banking union. i'm putting all the efforts there. >> is there a breakdown in communication between the french and german? >> no, i don't think so. we've made so much progress with a group of 17 or for the whole european union, 27 countries. if you take that into account, i think we're doing remarkably well and hoping to finalize some of the decisions before the summer. >> the french finance minister recently said we've entered or we've reached the end of an era

of austerity. does talk like that worry you? >> no, not at all. i don't use the word very often, austerity. what we do is talk fiscal conservation. we need to put our budgets in order. we need to find a new basis for growth. today's meeting there was a large amount of understanding between the different countries on the importance of fiscal conservation. so all the countries need mid-term plans to get their budgets back in order. >> i'm finding a balance between central bank action and fiscal policy. what was the talk on that? >> absolutely. and monetary policy can really not help us out of the crisis. it can take away the pressure. it can accommodate new growth. what we need are structural reforms in the first place as well as in the mid term deal with budgets, monetary policy.

let's be careful and look at the down sides as well. >> are we too dependent on central banks here? >> no. we've done a lot of work on budgets as well as structural reforms pushing forth the banking union. these are of key importance even more so than monetary policy. >> the euro group president told me that the banking union is more important than monetary policy figure. i'm not sure whether his view of a solid banking union consists of a solid union by the cb. the bail in mechanism happening at the national level. yes, there's always going to be a time gap there, but if it's got to involved treaty changes, then we're talking about years. as ever, a lot more negotiation needs to help as to how this banking un yot will happen. ross, back to you. >> julia, the spanish archbishop

is worrying about collapse. it will bring down the whole political system. at the moment there seems to be no change in front line policy. is that likely or not? >> well, it's a good question, ross. we have seen the likes of france, spain being given more time to reach their deficits. yes, the pressure to see the fiscal consolidation continues. the pressure for structural reforms, that's not going to change. they're needed to boost growth. the likes of france in particular, talks here, the need to push forward with structural reforms, open question. >> all right. julia, plenty more to come. thanks for that. meanwhile, the prime minister isn't willing to keep his government going at any

cost. he had a meeting in tuscany. the tensions with the coalition are up. sill view yeah berlusconi, they were accusing of trying to eliminate him politically. they're outlining the government's agenda here on cnbc and explaining the steps they're taking to try to boost the economy and reduce the deficit. >> it is going to be redesigned in such a way not to increase the deficit and to stay within those limits. as i said, thanks to the kind of policies that were followed in the last few years, we have already gained some room of maneuver within the 3% margin. we are not above or very close to it. i think it's a feasible job.

>> an hour and nine minutes into the trading day. they've been trading at the best level since october of 2007. it's a little bit less than a tenth in the cac ka rant. we're look on the down side. top stocks worth looking at this morning. the bank is down 1 point poip 78. we'll have more information on that coming up. as far as commerce bank is concerned, down 4.5%. the subscription will start in the middle of this week. speaking to reuters, this is part of the bank' plan.

deduction rate, 18% of the first quarter. it's got new and expanded markets. lonmin, up 5.5%. that's more than double. they're recovering from a tough 2012. as far as bull markets are concerned, ten year treasury yields, 1.9% is worth pointing out, what, it was about seven trading days ago we were at 1.62%. spanish yield hard, 4.24. italy, 3.93. the numbers are auctioned out today, 3.5 billion. that to be auctioned.

cct, 1.5 billion. and 1.90% in spain. we'll keep our eyes on those. we have steadily low yields in the last three and a half months. the u.s. dollar, 1.29. we could cut deposit rates to bring the euro rates down. we are he maintaining a reach about 101. the aussie dollar is in the low hundreds. we have the asian update. >> i think you're right. asian markets mostly lower today but japan continued to outperform thanks to a weak yen. the nikkei gained 1.2% today hitting a 5 1/2 year high.

that's after japan see skapd the criticism over the weekend. it hovers at its lowest level in 4 1/2 years. japan's top automakers are driving higher with nissan up 4.5%. we've got big news in the electronics space as well. sharp shares have soared over 12% following a nikkei report that the company will cut back on its operations in europe to focus on growth markets. the company will report its results tomorrow. panasonic and hitachi shares jumped by 8% after boasting better than expected shares. the rest of asia, they lost .2%. this is after china's april industrial outthreat fell short of expectations. in hong kong, a bit of profit taking. the hang seng ended lower by

1.4%. in south korea, they managed to gain .2%. they lost a bit of their shine on the back of the weaker commodity prices. back to you. all right. thanks very much indeed for that. that's a look at the asian markets. the chairman of the loids banking group has announced plans to retire. bishop said his timing is right to depart. the bank has made significant gains. he has to find a successor. meantime, british bank hsbc

has company policy and they said 1 billion in costs. they could have the disposal of up to 20 businesses over the next two years. britain's top 100 countries are running 800,000 subsidiaries. according to a new report by u.k. chair, they're talking about corporate accountability and jurisdiction. same time, british financial regulator ssa is monitoring a dual track system to replace libol. they will set the new benchmark rate. policy makers have been calling to libor ever since the scandal last year.

and j.p. diamond said he may leave jpmorgan if they split his role. t"the wall street journal" said he made the comments last week. investors will make a nonbinding position next week to split diamond's duties. jpmorgan's stock up to 30 in frankfurt. bloomberg is in damage control mode. they viewed subscriber information on its computer terminals. "the new york times" has reportedly been told to use it to give them a competitive edge. one reporter had information of a customer of goldman sachs. the 30 year treasury are investigating whether they tracked their employees.

on friday bloomberg ceo said making cuts is a mistake. the function is being disabled and in an editorial on sunday night, matthew said the practice was at one time common place. we've already talked about it. get in touch with us e-mail us at worldwide@cnbc.com, tweet us. still to come, china's consumers are helping to turn around the country. [ kitt ] you know what's impressive?

a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it.

♪ after all, what's the point of talking if you don't have something important to say? ♪

>> announcer: you're watching "worldwide exchange." >> announcer: you're watching "worldwide exchange." okay. if you've got any sorts of comments e-mail us. north korea is grappling with a fragile economy. up 9.3% from a year ago. the only piece of data that did meet expectations, up 12.8%.

investment remained weak clouding the outlook. joining us from hong kong is jane from jpmorgan. what do you do with this latest data? has it changed your view? >> these numbers haven't really changed our views. they were broadly in line with expectations although industrial production numbers were slightly below market forecasts. i think what we're seeing today is the emergence of a two-speed economy in china. on the one hand you have heavy intensities industries not doing well. on the other hand, the service industry, the consumer sector, e. commerce, so forth are doing very, very well. we can describe china's economy as a two speed economy. >> yes. how important is it to respond

to that? >> well, you know, the chinese leadership has been trying to engineer and rebalance the economy for some time. maybe it's not bad news that the investment sector is slowing down a little bit but in the meantime the service sector is picking up. however, the service industry only accounts for 35% of gdp and 36% of employment as opposed to 70% in the developed economies. so the service industry has a long way to go. now we're in this transitional period as the industrial sector slows down, growth rates are also coming down. programs in the coming several months we'll see more measures coming out from beijing to boost personal consumption, services and the consumer sector overall. >> there is, of course, trying to contain home prices. i'm wondering whether that may have an effect. how does that play into the mix?

>> that's a very important question. the chinese property market had a very strong first quarter of the year. since april property transaction volumes have come down due to the implementation of new policy restrictions. prices in april remained relatively strong, however, in the coming several months with weakens transaction volumes we may begin to see prices stabilize. it's so consumer rich. people may actually slow down some of the spending especially in the high end sectors, vehicles or luxury goods. it's a balancing act. on the one hand the vehicle is trying to build more low cost housing to accommodate low income families. on the other hand, they're trying to control prices at the very top end in the property market which causes a lot of social tension. >> yes.

when you break down the retail sales, we've got this clamp down on property prices as you say, where is the bright spot of retail spending? >> well, the bright spot of retail spending is in ecommerce. the chinese ecommerce market has emerged as a major growth driver for the economy and consumer spending. remarkably ecommerce accounts for 5 to 6% of the total retail sales. it took china only a few years to reach this penetration. it took america 10 years. chinese ecommerce is triple the growth rate over retail sales. that is, indeed, a bright spot. this poses challenges for the brick and mortars and shopping centers.

ecommerce will continue to grow at a much faster pace than traditional brick and mortar shops. >> good to see you. managing director and chairman ever global markets for china at jpmorgan. jgb suspended after a circuit breaker kicked in. jgb is under plenty of pressure because of the end slide which hurt u.s. bond prices. all of that helped to push jgb to its highest level. investors also feeling a little nervous out of the 30 year bond auction that is due tomorrow. and life's become something of a drag. the legend boss lost the bets. they doned makeup and a stewardess outfit to serve on a charity flight to malaysia. the bet is over which team would

finish first in the 2010 formula one grand prix. in abu dabi. >>. >> it's perfect. i'm having a good laugh. i think i've done my -- i think i've honored my side of the bet. >> the ultimate publicist. still also on today's cnbc.com, we were told that the central bank is told to increase the deposit rates. this move could have serious unintended consequences. cnbc has been told that france needs to speed up its economic reform. find out why this could increase tensions.

and also go online to find out why billionaire investor george soros says italy is still in big trouble. still to come, it's been just over ten days since glenco completed its trade. we'll find out whether their combined synergy is paying off. the new blackberry z10 adapts to how you write and suggests words you can flick on to the screen. blackberry z10 with flick typing. built to keep you moving. see it in action at blackberry.com/z10.

[growl] we used to live with a bear. we'd always have to go everywhere with it. get in the front. we drive. it was so embarrasing that we just wanted to say, well, go away. shoo bear. but we can't really tell bears what to do. moooooommmmmm!!! then one day, it was just gone. mom! [announcer] you are how you sleep. tempur-pedic.

>> announcer: >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. and these are the headlines from around the world. the creation of the e.u. banking union and divisions on how to get there. the finance minister says he's working on fixing relations. >> we have gone through this difficult period and we shall continue with determination and commitment that we shall get out of it. >> the nikkei hits a 5 1/2 year high. the european stocks shall follow suit. bloomberg is struggling to

ensure its consumers. and plus china's industrial data is clouding the recovery outlook for their second biggest economy. in european stocks, an hour and a half into the trading day. the ftse 100, the best levels since october of 2007. up 1/3 of a percent. cac karant is down. the ten year u.s. treasury down 1.9%. and spanish trades are higher. the u.s. dollar is below $1.30. it's clearly above the 100 mark.

meanwhile, banking union is sure to spark the talks. another piece of unfinished business will be to curing a $3 billion challenge. julia is in brussels. she rejoins us. is there any trickery, anything left, julia, or do they need to dot the i's and cross the t's. >> i think it is a case of dotting the i's and crossing the t's. they're already implementing the reforms and measures. they're very hopeful they'll get the signoff. they're hoping to get signoff as well for the first tranche. some positive steps given the noise in the banking union. i spoke to the finance leader asking if they can give us any kind of idea when we'll see a full removal of those things.

listen in. >> it's an issue of monitoring the situation, making the progress in all parallel areas. moving ahead and then being able to make towards that. we are eager and we want the support of our european partners. we are eager to do away with the restrictions. >> do you have any sense of the damage that it's doing right now? >> it was very damaging and it was something and is something that would suffocate any economy, that's why we worked hard and we have significantly relaxed the restrictions but that is also why we are very eager to continue along the same

path and do away with the restrictions completely. that's why we are focusing all of our efforts in doing away with them. >> it remains highly restrictive for these businesses? >> i wouldn't say so. it was highly restrictive at the beginning. it is not highly restrictive now, especially for business. businesses can be -- essentially they could be conducted without any restrictions and that is important. that's an achievement. having been through what we have been through, so i want to emphasize the progress but at the same time i want to say what a commitment we have to completing the job. >> there's been a lot of focus in brussels this week with talk again over what happened in the bailout deal. i know you're not interested in

inciting blame on either side but has the relationship been damaged between cypress and brussels? >> if it is, we want to repair it. we belong to europe. cypress has been and will continue to be a reliable e.u. member. any hard feelings or any disappointment on either part should be put behind us. little knowledge that this bailout -- i'm sorry, the bail in, the bail in, if it was a bailout, it would have been a different story. the bail in is still being debated at the european level and is still under consideration and yet it has been imposed on

cypress in a very patterned way. not only that, but on the two big banks of the islands. so it has led to some frustration and other areas with a little bit of delay to react sooner to the looming crisis. >> the bail in of cypress is interesting for many reasons. cypress is caught by the troika on one side and russia on the other. i asked him about confusion on whether russia had signed off on a plan. europe is most likely pushing for results on that side most definitely and of course an acknowledgment from the cypriot

government. now, ross, back to you. >> any other news from brussels in the rest of the program. the numbers out from spain. now the chairman of translati o has unveiled plans. they're expecting to generate more news. they're calling for a board reshuffle and high dividend payout. how is that going down with investors in zurich. carolin is with us. good morning. >> hi. good morning. it's going to be a very controversial agm which takes place friday afternoon which takes place outside of zurich. carl icon holds a 5.6% stake and he's been lobbying for this $4 a share dividend for trans ocean. they want 2.24. they want to preserve capital to

keep the credit rating. carl ican is calling for an overhaul of the board. he's nominated three new board members. what you have to understand, the announcement from the chairman that he is going to be stepping down, that is a strategy to bring the proxy battle against carl ican. this is not trans ocean caving to the demands. this strategy to sacrifice the chairman, this is a strategy that is often used by companies to want to win a proxy fight. the chairman will step down so that three new board members can be elected. we'll see whether that, again, pays off on friday. >> meanwhile, glencore has an increase in copper production. how is the chair reacting? >> well, this morning first of

all shares are a little bit better. now they're down a little bit. generally analysts thought it was a pretty good trading upgrade. glencore is the biggest mining company in the world. you've got the copper production which really is strong to some. up 18% in the first quarter. as you look at after fri ska, production rose 44% largely driven by the increase. copper production is up 34%. now the metals and minerals business, according to glencore, which really only gave a lot of qualitative rather than quantitative statements delivered strong results despite some softening. if you look at their energy business, which relates to coal and oil, the marketing has markedly improved areas.

all in all a pretty solid job from glencore stocks. >> thanks. expectations and emphasis is needed. what do you think is happening there? >> it's hardly a model of transparency. that's what occurred to me when i saw that. it's interesting. the trading side and marketing is a bit sensitive. >> how do you work out what's going on? >> i think there's a bit of guesswork involved.

i suppose you've got the financials, glencore is very much bright tenberg's beast, it's putting trust in that individual and putting trust to manage. >> what happens -- you say pull up gears. are we going to see more acquisitio acquisitions? >> we would believe so. the whole idea was to create acquisitions. thus far, they've followed the script. they had ambitions to get xstrata back in. it's made it very clear reading between the lines, it's fairly clear that their key for other acquisitions. >> it's been rumored on a

relatively smaller scale that they could be picking over further assets but i guess the elephant in the room is anglo american, which is deeply troubled and also tied in with the problems with london that perhaps he might be brave and take over. >> how brave would it be? the stock that's in the ipo process, how brave would it be in this particular moment for metal acquisition? >> i guess the complication rose where he stuck to his guns. yes, he caved in rather sharply, but they bought xstrata rather cheaply. looking at the 100 day integration plan and how this rapidly moving creating synergies, looks as though the

500 million target will be easily missed and probably beaten by as much as 300 million. looking ahead, the company appears to be going places rather quickly. >> what about dividends? >> the dividends, in the current environment the yield is soft hence the purchase of high yielding stocks and so that's going to go down well with investors. special dividends as well. buy backs, not so certain about that one. >> thanks so much. now making a comeback from his 1999 military ousting, the former prime minister of pakistan sharrif gained the party this weekend. the u.s. president barack obama

congratulated pakistan on a successful election. thanks so much for joining us. is it noteworthy that we've gone from one democratically elected government through another election process to perhaps the formation of a new democratic government? >> very notable because you have to understand, this was an election which lost around 100 people in the process in the buildup. the taliban essentially declared war on the process. the election commission claimed that over 60% of registered voters came out. it became a two-man race. nawaz sharif came back out of nowhere. essentially secured most of the parliament. the other campaigned on the not an anti-american platform but

anti-war platform didn't do well. they had very different areas of concern. they had very different campaigns. the anti-war mess sage didn't work. >> what message do he and his party have? >> hahn is fighting for second place right now in a legislature that seems to be dominated by sharif 678 let's talk about sharif for a second. he says he's pro business. the business community seems to have it running really well. the stock exchange has rocketed up and reached the 20,000 mark barrier. the indians on the business side. he's found the architect of the core business approach from india.

hahn has developed a reputation from aunt-american even promised to shoot down american drones if he became prime minister. it didn't translate in the old school ways. >> okay. thanks so much for joining us from lahore. still to come, we speak to a guest who says nawaz sharif has won a poison challenge. we'll find out why. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time.

[ telephone ringing ] now a waiting room is just a room. [ static warbles ]

"worldwide exchange." "worldwide exchange." investors are out and it says the majority of the european investors believe that the financial markets do not reflect the underlying weakness in the eurozone. that's why i said the rest of the crisis is not yet over. 29% say the markets are slow. 30% say they're rationally exuberant. the views that i expressed on cnbc. let's get more on pakistan.

we have the senior analyst at control risk. thank you for joining us. you've been talking about the economy. big support from the business community. what's his biggest challenge now? >> yes. sharif returns to power to pakistan much changed since he was last in the hot seat in the late 1990s and facing an extraordinairy amount ever serious challenges and at the top of the intro is the electricity crisis, particularly so far as the business community is concerned that backed him strongly throughout the election campaign. >> what does he have to do? >> he has to get electricity up and running. pakistan suffers a very severe energy shortage, especially in the capitol of islamabad. they're doing the job in

karachi. it's simply become impossible to rely on supplies. it's become very, very expensive for manufacturers to operate in the country. pakistanis are extremely frustrated to endure power outages during the hot periods of the year. it's generating unrest. the first is the electricity problems. it's complex and wide ranging. this is not going to be an easy challenge to resolve, but it's one that you would expect to be a priority for sharif right away. >> how confident are you that india can make the noises. >> it will be a key area to watch for with sharif coming back to power. he's perceived as someone who has mellowed during his period out of office. he's perceived as a pragmatist.

someone who has a trade relationship between india and pakistan being critical not only to helping resolve tension in the region but also helping pakistan to help resolve its financial difficulties. we would expect this to have improving trade relationship, however, he will face challenges in doing this. for example, it's not clear the extent to which the army will support sharif's priorities on india and also there are other pressures on the bilateral relationship that will test him. this includes afghanistan, the militant stress in the region and the implications of climate change on the region. >> yeah. how indicative is it the impact -- he's saying he campaigned on antiwar. sharif won. what one takes away from the

performance of his past in the election? >> sharif, yeah, there's a certain amount of rhetoric leading up to the vote that will certainly have been received in washington. the two strong performers in the election from kahn and sharif. he may take power in a province where the battle against the militant threat could potentially be won or lost in the coming years. i think these parties will probably moderate their line in having security governments, provincial and national level. it's on domestic policy that sharif is going to be tested mostly in the immediate time. >> thank you very much. the markets have reached that crucial 100 market. where has that left japanese

exporters. hi, makiko. >> hello. sharp was up more than 12% despite suffering a huge loss for the second consecutive fiscal year. the struggling electronics giant has deficits forecast to reach $5 billion for the year ending march. investors were hopeful that the company will be conducting a wide reaching restructuring effort including a shakeup. the vice president is set to become president following a stockholders' meeting in june. it plans to downside operations in europe by cutting back on lcd tv due to falling sales. on the bright side it will be supplying cost saving measures. with these changes in site, the firm has managed to secure a $1.5 billion loan from the main

banks. meanwhile, panasonic stocks finished up 8% after announcing last week that it is finally expecting to return to the black by march 2014. it had booked a second straight year of massive losses of more than $7 billion for fiscal 2012. back to you, ross. >> makiko, thanks. that's what's on the agenda tomorrow. china will release its meeting. three companies will release their quarterly results. meanwhile, this investigator has found the irs looked into the political meetings of groups for tax exempt status. under irs rules they can take place in some political activity but they must mainly focus on

social welfare. on friday a top irs official apologized for an inappropriate investigation by lower level employees. two members of mark zuckerbe zuckerberg's group left. they have quit. launched in march the group has aimed issues at education reform and they've backed conservative actions. besides running the electric car make maker. the obama administration is unlikely to make a decision on the controversial keystone pipeline until later this year. they'll export petroleum products from canada to

nebraska. they say president obama isn't rushing the process. they will weigh the impacts on the environment. they have several stages to work through, including one that hasn't begun yet and could run for months. detroit's emergency manager will issue his report today with several recommendations to help them avoid financial collapse. in a statement kevin orr says the path they have followed for more than 40 years is unsustainable and requires a complete restructuring. the report says bankruptcy remains an option but he hopes to avoid that by cutting costs such as temporary health care and pension and selling city assets. detroit has a junk level rating of more than $15 million in debt. bloomberg is reporting that everyone does it.

they got caught. the response is coming on "worldwide exchange." e-mail or tweet us at ross westgtate. and still to come on the second half of "worldwide exchange", european central bank governing council member says the bank could introduce negative bank rates. we'll have more. we'll come back after the break and we'll hear why it just won't go away on the next half of "worldwide exchange." we'll be back in just a few moments. ♪ roomba, roomba, roomba, roomba ♪ ♪ roomba, roomba ♪ roomba, roomba ♪ roomba, roomba ♪ roomba, roomba ♪ got a robot vacuum ♪ cleaning up my life

♪ and it's gonna cut through ♪ filth and funk ♪ just like a knife ♪ dirt won't come back again ♪ thanks to ♪ my brand new friend ♪ got a robot vacuum ♪ cleaning up my life i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t

have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪

the stocks follow the streaks. the stocks follow the streaks. >> announcer: you're watching worldwide exchange bringing you business news from around the globe. all right. it's just after 5. starting the global trading day. the dow closing up on a fresh record high at 1% at 550.118. the nasdaq 100 is currently 40 points below.

the s&p 500 also is currently down around 6 points below. the global 300. right now it's up 6 points. the ftse 100 closed on friday at its best level since october 2007. back over the 660 mark. they're up 1.6% last week. the ftse is down. the dax is up. down 38 points. the cac down .8. bond yields high. other stocks to focus on. let's focus on lloyds. the chairman is going to retire in the coming year. we'll have more on that in a few moments' time. commerce bank is down 4.5%. according to resources talking to reuters, this is all part of

the german bank's plan. glencore xstrata up .3%. it's ranking up expanded operations to benefits to increase production in the congo. finally, the lonmin is up 7%. it more than doubled last year's number. it's recovering from a pretty tough 2012. as far as bull markets are concerned, the ten year treasury, 1.9%. up nearly 7 basis points. seven trading days earlier. we're going to keep our eyes on the bull market in the next 15 minutes. auctioning up to 3.5 billion.

it's 1.92. 3 billion ccts. 1.5 billion in the 30 year as well. the euro is consistently coming down. we'll see how we get on with this issue. and on the currency markets, it's firmly above the currency level. keeping your eyes on that. euro dollar, below $1.30. more talk on whether we could, would, should cut the deposit rate. beforehand, we're in singapore to recap the nation. sixuan. >> thank you. apache markets. the industrial output, investments fell short of expectations. the world's second largest economy remains soft. japan managed to buck the down trend once again up more than

1%. the nikkei hit a fresh multi-year high. this is after the g-7 gave japan the talk. big moves in japan's electronics. sharp soared more than 12% following the report that it plans to cut back on its businesses in europe to focus on growth markets. panasonic and hitachi saw big gains of nearly 8% today after posting better than expected profits. over in hong kong, the hang seng slipped 1.4% today. there was a three month ban on its improvement from ping an. cnook is hurt today by weaker gold and oil prices. the pull back in commodity prices also put plenty of pressure on australian resources

today. tinco lost 1.5% today. goldcrest tumbled by 4%. oil major santos also ended a bit weaker. >> thanks, sixuan. the central bank could still fall below the present rate. speaking at the g-7 meeting today, an ecb governing council member said it was something the central bank will have to look into. >> we are certainly prepared to go in that direction. obviously the big issue is whether the economy would need help and it's capped at 25 business points. we all agreed in the council that we have to look with care

to the world kbs conditions in h case we think, i personally think it will be effective. the economy is capable of taking it on. we have that discussion. technically we're okay. there might be unintended consequences. we will have to work on that. >> julia's now left to go to brussels to go to a meeting. just picking up on that. i hate to over interpret what he said. so where are we? do we know where we stand now with the meeting? are they singing off the same hymn sheet? >> i think we have to be careful. he suggested the economy can take a lower deposit rate. we know it's continuing.

we know they acknowledge that there will be unintended consequences but he also suggested not only are they recognizing the unintended consequences but they do know how to deal with them. the economy can withstand it, that's one of the huge questions. that's what one of the further questions is. they know how to deal with it. that opens the door to the possibility, again, when we spoke to the central bank governor of aus stree yeah after the ecb meeting. he said the market has overreacted. yet, again, remember he did say this was his personal opinion of course. i do think it's interesting to hear that at least one member of the governing council thinks that the economy can withstand it. i think that's something new here. i can understand that, why the market reacted again on this. >> yes. putting that aside. you're now in brussels as well with the banking meeting.

banking is on the agenda. more voices on this as well. >> yeah. i'm between mixed messages. the chairman of the euro group on saturday, he said he was very positive about coming to an agreement on the banking union before the summer. he said it would be a solid banking union. at the same time you have the piece in the financial times and the financial minister saying ultimately in order to see some sort of resolution, bail in mechanism, we'll hear treaty changes. we've heard that they think the current treaties allow for some kind of common system to resolve banks and to sort this out. so as over here in europe, still plenty to discuss. it does make him hope for an agreement on the banking union quite hopeful. it depends what kind of banking union we're looking at, solid or not. ross, back to you. >> thanks. more to come from julia and you

can read more about this at comments at cnbc.com. plus, they're telling us that franks nee-- franz needs to spe it up. visit us online to find out why billionaire investor george soros thinks italy may still be in big trouble. in fact, japan's finance minister said they have jumped above the 100 yen mark shouldn't be discussed and he has nothing to say on that. >> translator: i have nothing to

say on the market. i have no comment. it relates directly to the market. i can't say anything about that. >> let's get the views of adam at lbc. you said not much coming out of g-7, i guess, adam. how decisive is this on the yen? >> i think it's decisive to the extent that it moved quickly and there is a lot of money behind it. however, i think what we're still looking at is the market building in layer upon layer of leverage rather than any of the real long-term money flow that had been expected as they were forced out of japan. it's the leverage outside of japan that's driving this rather than japanese investors looking at overseas yields. >> they're still trying to front run an idea which so far has no basis. >> that's absolutely the case,

yes. i think there is a danger in the long term. most of the capital flows will never materialize. for the time being you can't find the momentum. longer term that was a very real danger of this, the cap and flow that he is's trying to preempt the natural flow. >> the development of the 100 level, it's pretty much stronger build up across the board as well. does that move? we're trying to look at what the new coalition is. >> yes. certainly it was a pretty much parallel move for many g-10 currencies last week. we're not concerned that yet is the right time to play back to the u.s. economy which we undoubtedly have.

the policy link is a very fragile one. i think we'll see this underlining that. we're a long way from the fed even tapering asset purchases. as long as that makes the fragile one, it's early to play back to the u.s. economy. we're skeptical on that. >> yeah. the other thing of interest is to have them go below 100 to the u.s. dollar. it's below june 2012. we had to get there last week. how weak is that going to go. >> not much weaker. partly, again, it's an aussie dollar story. to the extent that it's an aussie specific story, we think if anything the markets are overreacting. it's about timing rather than the absolute magnitude of the falling interest rates. we think they're at the bottom of the cycle now and to the extent that you have that plus

degree of reversal in the gains, i think we form a base and can look for it to trade higher. >> i'm just finding the dollar, adam? >> i think the debate opening up this morning on negative deposit rates, i think the hope for that is high. what we clearly have now is a zero boundary move on market expectations, it's a much clearer transmission that they need softer economic data. softer data is what we expect. i think that's generally made the background for the euro. >> adam, have a good week. bloomberg is in damage control mode after saying they had the ability to view subscriber's contact information on its computer terminals. "new york times" says reporters were told to use the terminal to get a competitive edge. bloomberg said at least one reporter had access to goldman

sachs after the bank complained last month. they're also accused of tracking log in information. they're investigating whether they track their employees. on friday bloomberg ceo said making customer data available to reporters was a mistake and the function is being disabled. in another turn sunday night, bloomberg said the practice was at one point common place. get in touch with us. you can e-mail us worldwide. tweet us and/or tweet me directly @rosswestgtate. record low yields. we'll have the latest. it's only a matter of time before europe heads higher.

>> announcer: you're watching "worldwide exchange." a recap of the headlines. bloomberg is paying damage control. the company central bank governors are concerned about the negative rates with the euro lower. the nikkei hits a fresh record high.

and still to come as well, a classic mogul goes up against a tree at the box office and loses. this weekend's film taking when we come back. are you still sleeping?

just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.

the the nasdaq hats declined by 16. we're waiting for the results of the italian auction. meanwhile, some of the other stories we're following. robert downey jr. held off leonardo dicaprio. "ironman" took in $949 million total. if it tops $1 billion, we'll come back to that. we'll talk about the great gats by. we have the latest on the italian debt auction. we'll collect it into one easy read. italy sold $3.5 billion of the

216. that's what they were targeting. the yield, 1.92%. it was 2.29% on the 11th. it's come down. the ratio is 1.34 verse he is 1.4. the b to p, 7% lower than the 4.55. i'm just trying to see the amount raised on that. i haven't got the amount raised yet on the 2026. the cctu also sold 3 billion out of the maximum 3 billion planned on that. they've raised the amount of money they wanted. look for that lower across the board. that's the cash market responding a little bit to that as well. anyway, once again, italy lower yields across the board raising the amount they wanted in total looking to raise, what, 5, 6, 7,

$8 billion in total. that's what they've done. we'll keep an eye on that. meanwhile, back to the movies. "the great gatsby." the f. scott fitzgerald movie opened with a solid $51 million. as expected, it drew a large female audience. elsewhere, u. smps. investigato looked into the political leanings of groups when submitting their tax exempt status. they must mainly promote social welfare. last year many groups said they had unfairly been targeted. on friday a top irs official apologized by action that was started by lower level employees

and not higher political appointees. mark zuckerberg's group from forbes left. musk quit. launched in march, it's focusing on immigration and education. david sacks left also. musk is the chairman of the solar energy company, solar city. march has become something of a drag for richard branson. he doned makeup and a stewardess account on a flight to malaysia. he took a bet on who would win the 2013 grand prix. he found out that things are a lot harder than his staff made

it look. >> i think i've honored my side of the bet. >> yes. i see how stewardesses are going. anyway, well done to him. he's still a consummate publicist, whatever he's doing. we just had news out of china. they're likely to ease controls by the year end according to a former bank of china advisor on dow jones news wise. they have tight end the property market. we'll still come. tracking the terminals at bloomberg as the company makes information that news reporters had some information and could monitor online activity. we'll have the latest coming back.

♪ ♪ ♪ ♪ ♪ the new blackberry z10. with time shift and blackberry balance. built to keep you moving. see it in action at blackberry.com/z10

"worldwide exchange", recap of the headlines today. bloomberg is scrambling to reassure its thousands of custome customers. the president of the e.u. banking union says they have to

get there. we'll hear exclusively from the finance minister who says he's working on fixing relationships now with the rest of europe. >> we are eager to repair the damage, politically, economically we belong to europe. >> the italian central bank governor says they can fix it if other measures were needed. and the nikkei hits a 5 1/2 year high. the european stock. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. all right. if you've just joined us, very good morning to you. fresh week here on cnbc. after the record close again on u.s. markets last week, markets

have gone a little bit lower. the s&p 500 is tracking nearly 7 7.5 points below value. the dow at the moment is some 58 points below value closing off a fresh record high, 50.118 of course on friday. european stocks. the ftse global 300. just down 8 points at the moment. the ftse was up 1.6%. we close over the 6,000 mark. it's the first time since october of 2007. just up 1/3 of a percent. it conducts its fresh record highs. we're now a percent lower for the ftse. the cac karant. they had an auction result out there. they're looking for three issues. it's lower again in this auction

compared to april. this is a temporary phenomenon. it's going higher as well. so what are investors to do at the start of a new trading week? here's a recap of some of the thoughts we've had this morning. >> we are continuing things very aggressively. we think this leads to long dollar positions. in particular this week, we're looking for good things. i think from that aspect, you can look for things going forward. it can be price protection.

>> again, i don't want to give the impression that we're running with the british scenario, but this is a year where you have to run. looking incredibly expensive. now what could be a major proxy breech, reporters had access to information from customers, thousands of them, big and small. jackie deangelis is state side. good morning. >> good morning, ross. the bloomberg is in damage control mode, this after admitting on friday that its reporters had the ability to use subscribers' contact information on its computer terminals and also monitor their log in activity. "the new york times" says that reporters were trained on how to use a specific keyboard function and told to use the terminal to get a competitive edge.

bloomberg says at least one reporter got access to information on goldman sachs after the bank planed last month. the incident came to light after bloomberg asked goldman if a partner in hong kong had left the firm casually mentioning that the person hadn't logged onto the terminal in a while. bloomberg is accused of tracking log in at jpmorgan. the federal reserve and the u.s. treasury is questioning whether they've tracked their employees. on friday bloomberg's ceo said that making customer data available to reporters was a mistake and that the function has been disabled in the newsroom. financial times reporting that executives knew about the privacy issue in but didn't close the loophole until

goldman's complaint last month. in an he had do recall bloomberg news editor in chief matthew wink ler said at no time did reporters have access to customers, trading, portfolio, monitor, client messages to one another. wink ler says this practice was common place back in the 1990s. he also said the error is inexcusable. he's the author of "the bloomberg way." that's regarded as a quintessential hand book on ethical reporting. i spoke to a few of my former colleagues on wall street. using the bloomberg terminal is like the holy grail. they hope the situation is rectified. >> they don't have much of a choice. jackie, thanks very much, indeed, for that. we had pretty good results out of an italian auction a short while ago.

six-month t. bill average yield were nothing really, .0013%. negative on april the 8th. i'm not sure -- didn't actually say they were negative in this one. no, they were negative. they're no longer negative. anyway, there you go. now the markets enjoyed a break in april. it was climbing up to $1.5 trillion. up 2%. it led with 6.3 billion of inflow. commodities saw the biggest outflows, 8.1. gold funds are the weakest link. joining us for more, ellen bell head of the u.k. intermediary. thanks for joining us. so, yes, in flows doing pretty well.

everybody still wants yields, do they? >> they're up. >> is that why commodities are not doing so well? >> yeah. commodities are mostly related to gold and it's no surprise that the gold close has been negative. performance here today is about negative 11, 12%. you're seeing a lot of investors move out of gold. what's interesting is that gold etf only make up 7% of the gold market so investors need to be aware of that. >> okay. i've seen the march influence and sentiment. >> 7% is a small number, but there's a price of gold in portfolios. the fundamentals are there. we know china and india make up over half the global demand in the market. china in the first quarter jumped 26% in terms of their demand compared to last quarter

in 2012. >> this search for yield, you say caution must be given towards chasing yield. why. >> that's right. when investors look for growth, right now there is that shift. investors want to make sure there's some sort of down side protection. they're looking for companies that are generating yield. what we do know is over the long term that's not necessarily going to give you the growth uplift. >> yeah. so, look, what's -- i mean, you say you should have a full suite of income generating assets. what is this move telling you at the moment? how much further it's got to go. >> that's right. i think investors are definitely looking for yield. you just said it. some of the numbers are in germany too. in the developing markets and looking in the german markets.

we have seen outflows on the equity market side. there is definitely interest on the fixed income side. >> what's happening to it's ju very different market over here. investors need to take that into consideration. a lot of foreign investors invest in u.s.etfs. you have to take all of that into consideration. it's still dominant. they capture about 75% of the quarterly etf market. europe is coming on quite significantly with about 380 dollars of investment. >> the s&p 500 small cap is not doing badly. >> this is sort of what we call dividend and income players again, investors want to make sure they're diversifying. they want to do it in a way that they're comfortable with. >> is there a sense when you

look at the performance of treasury, the government bond and investment grade bonds, is there a sense that maybe, you know, is there a sense there's not a lot left. >> that's why we've stocked some growth. >> good to see you. thanks so much for joining us. state street global investors. still to come, the german finance minister says banking requires treaty change. euro people feel it will happen by the end of the summer. who's right? we'll be back. ere isanybody know where flo is? are you flo? yes. is this the thing you gave my husband? well, yeah, yes. the "name your price" tool. you tell us the price you want to pay, and we give you a range of options to choose from. careful, though -- that kind of power can go to your head. that explains a lot. yo, buddy! i got this. gimme one, gimme one, gimme one!

the power of the "name your price" tool. only from progressive. bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less? ahh, oh! [ garth ] great businesses deserve unlimited rewards. here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? i want to make things more secure.

[ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better.

♪ you'reuncer: >> announcer: you're watching "worldwide exchange." there's more evidence that china is grappling with a financial recovery. it's up 9.3% from a year ago. the only piece of data that did meet expectations is retail sales. that was up 12.8% on the year. analysts say the latest numbers signal that china's domestic demand is weak clouding a strong economic rebound. j.j.b. temporarily suspended by the tokyo stock exchange. a circuit breaker kicked in.

jgbs were under plenty of pressure because of the end slide and the exit which hurt u.s. bond prices. all of that helped to push benchmark yields. they hit 8.3%. investors also feeling a little bit nervous ahead of a 30 year bond auction that we've got tomorrow. jim is saying he may leave jpmorgan. "the wall street journal" said he made the comment when pressed by some of the biggest shareholders at a private meeting last week but that it would be a worse case scenario. they're voting on a nonbinding proposal to split dimon's duties. that's in the $6 billion world trading loss. there was a 40% share at last year's stock meeting. the stock is up around half of 1%. the obama administration is

unlikely to make a decision on the controversial keystone pipeline until later this year. the pipeline would transport oil from canada to nebraska. he weighs the project's impact. the pipeline still has several stages to go including one that hasn't begun yet. detroit's emergency manager will issue his report today with several recommendations to help the city avoid financial collapse. it's unsustainable and it requires a complete restructuring. lloyds reports bankruptcy remains an option but he hopes to avoid that by cutting costs such as temporary health care, pension, and selling the city's assets. they have a junk credit rating of more than $15 billion in long-term debt. here's a reminder of the

headlines. bloomberg plays damage control after news that some reporters were able to track activity on the terminal. the ecb could make the grade. and the nikkei climbs to a fresh 5 1/2 year high. and still to come, they're hoping to reach a greater high in chicago and previews of trading day and the week ahead. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ ... you thought wrong.

get up to 50% off hotels this memorial day with travelocity. european wide banking union in the near future has been

thrown into doubt. it would require a treaty change. the issues over the legality and the block should aim for a two-step approach. huh. okay. how is that going to go down with the euro group meeting in brussels? that's where julia is. right. that's what the german finance minister is saying. in brussels they believe you don't need a treaty change? >> you're absolutely right. what we've heard from the ecb and the european commission in the past is that the existing treaty will allow for a common mechanism to allow the winddown and the restructuring of banks and this is the thing that the general finance minister wants to see separate. the first steps, fine. we can have a supervisory body to open up the banks. if you want to see any kind of mutualized support for the banks, we need treaty change.

this is not a new move. i spoke to the chairman of the euro group over the weekend and he seemed very confident that we would reach an agreement before the summer. listen in. >> i actually am quite positive we'll reach results before the summer. also in the banking union, also on the complicated issues of bailing in banks in trouble, which is necessary to deal with, we need to make clear both to depositors and financial markets how in the future we will deal with that in europe. i think we're making good progress. >> there's always going to have to be a time lag, i think, between getting the ecb up to the supervisor and then seeing the step up of the funds to help with the winding down of banks and restructuring of banks in the future. if the german model is used we're talking about months if not years in order to start changing treaties. there are conflicting signals programs here in brussels.

>> yeah. what a shift. that's a nice change, conflicting views out of brussels. >> i know. >> good stuff. thanks very much for that. let's look at the markets, meanwhile, the germ manual market last week, the ftse up above the 600 mark for the first time since october of 2007. the ftse is down 3/4. a reminder on what's on the agenda in the united states. retail sales at 8:30 eastern. it dropped 4% at 10. we get march business industry which makes cereal brands such as grape nuts and honey bunches of owe thes. also, take-two interactive. british prime minister, david cameron, is on there. you lucky people he's on a

three-day tour to the u.s. in washington, d.c. the two leaders are going to discuss what's happening in syria and working on finalizing a u.s. e.u. trade deal. the pair will hold a press conference from the white house at 11:15 eastern time this morning. cameron goes to boston to express condolences of the bombings. the prime minister will wrap up his trip later in week with a stop at the united nations in new york. right now after the fresh close highs we had friday, we are lower for the u.s. equity markets. the nasdaq is some 16 points below. we have the senior market analyst from trading advantage. alan, thanks for joining us. what kind of day do you think we've got in store? >> we've got a bit of weakness

to start off the day but i was encouraged last week by a couple of things. we had all-time highs. number two, we saw some flows out of the bond market. the 30 year treasury, that market is what i used to gauge where money is going. it's finally coming out of that safety of treasuries. the bonds trading between 147 and 149 for the last three weeks. they pushed to the down sides. that target is 145. we've seen the yield push about 3% for the first time in the 30 year treasury. that's an encouraging sign that money is flowing out and that could go back to work in the stock market. >> we've been here before though, haven't we? you know, i know we've had a big backup. the ten year treasury yield has been up 1.6%, 2%. this morning, 1.92%. we've had a big move up. one would be tempted to suggest we're just getting toward the bottom of the range for a new,

big move. >> well, i think it's a healthy sign. in looking at the 30 year, the 30 year is going to move more dramatically than the ten year. we've seen some real push in the 30 year after it had moved to pretty much close to the highs here recently. so that unwinding is encouraging. what i'm not seeing here is i'm not seeing unwinding in the dollar. the dollar remains strong. we're above 83 and have tried, tried many times to push below 82 and couldn't get any acceleration. we're seeing the trade up between 131 and 128 over the last few weeks. so it will be interesting to see whether the support in the euro can hold at this 128, 129 level. that should offer a lot of clues. i think we're at a weird place in the marketplace because we're through earnings season essentially. the beginning of the new season starts july 8th. now the markets can be looking for catalysts and kind of picking apart what they think

are going to be the next earning cycle numbers and see if we can achieve them. we've been able to do it every quarter. >> as you say, we're not likely to get anything out of europe. we should suggest in that environment you would grind hard. people continue to chase some return. >> yeah. i like to think so. the last couple of quarters we've seen a little bit of profit taking going in as we end the earnings, as you don't have anything in our face to remind us that earnings are doing better and better. so we will have to see from here, but i think you could see a little bit of profit taking finally. i'm still very positive, very optimistic. i'm still looking for the s&p to get to 1650. that's the move we saw from 1590 down to 1530, retracement of that to 1630. if the s&p is going to make new

real all-time highs, if you reflate the all-time highs, we have to get to 2100. we still have a long ways to go. just because we haven't had a selloff doesn't mean we need to have a selloff. >> all right. thanks very much indeed for that, alan. the day-to-day. bloomberg is in damage control mode after admitting that its reporters had the ability to view subscribers' contact information. plenty more to come on that on cnbc. tweet us. "squawk box" will have more on that story and more state side. have a great day. ntrigues me. it appears it's an agent of good.

♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room.

good good morning. today's top stories, stocks continue on a hot streak. u.s. equities have posted three straight weeks of gains. in corporate news, bloomberg admits to terminal snooping. now the fed, the treasury and wall street are questioning it. jamie dimon reportedly might leave the bank if he is stripped of the chairmanship. monday, may 13th, 2013, and "squawk box" begins right now. ♪ ♪ good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky along with joe and andrew. we've been watching u.s. equity

futures. after the big gains you can see red arrows. the stock futures down about 61 points on fair value. s&p off by over 8. the dow, s&p and nasdaq are up 13 to 15%. minor red arrows may not give you too much cause for concern. a strong dollar is hitting oil and gold prices. the dollar is down against the euro which is back below 1.30. it's also down against the yen. let's keep that relatively speaking, 101.60 is where the dollar yen stands. gold prices this morning, you can see that they are down by close to $10. 1427 an